– My son and his wife have just returned to Canada after living abroad for
several years. They have opened TFSA accounts, and I want to give them a
head start on investing by transferring in kind some assets from a TFSA
account I have to their accounts. This would be a gift, not a loan. We all
deal with the same discount broker so that institution would handle the
The question is: Is this gift transfer allowable? Can it be made without
incurring any taxes on my part? Does the annual $5,500 limit apply or can
the transfer in kind exceed that amount? – Gerry G.
– Sorry, this idea won’t fly. All Tax-Free Savings Accounts (TFSAs) are the
personal assets of the plan owner. There is no provision for transferring
money or securities from one person’s plan to that of someone else, even if
they are married.
If your son and his wife have not maxed out their contribution limit, you
could withdraw some money from your own account, tax-free, and give it to
them to deposit in theirs, up to their allowed maximum. That’s about all I
can suggest. – Gordon Pape
is one of Canada’s best-known personal finance commentators and
investment experts. He is the publisher of
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